It is never easy to deliver the bad news to your employees, but bad things can happen to any companies. Sometimes, few external factors like economy or exchange rate can affect your company’s bottom line. And at that time, company’s very survival might be at stake. And hence, you might be put in to the situation, where you have to take those tough decisions as a company’s executive. The primary challenge during these situations is – Communication. If handled incorrectly, you might risk of losing your employee’s trust and tumbling their morale. In this blog, I would like to share one of the success story, where listening to employee’s input while taking these tough decisions have helped the company.
While taking tough decisions such as layoffs, restructuring, outsourcing, etc.; you should involve your stakeholders in the planning and implementation stages. You might not be able to involve all of your employees while taking these tough decisions, but you should at least engage your senior management and department heads in the consultation process. Depending on the situation, you might want to keep employees/employee representatives apprised of the situation to avoid any surprises. On various occasions, this strategy might prove to be helpful.
Take this company for an example (company X), where I recently consulted them for downsizing. Company X had really bad financials. It was clear that they had to cut down two of their product lines, which were not performing at all. And hence, they had to layoff few of their employees due to tumbling financial situation of the company. So, instead of announcing few layoffs, the CEO announced voluntary retirement program and some pay cuts. Surprisingly, I was able to collaborate with majority of their employees and get them to agree upon a pay cut and retraining program. As a result, we didn’t need to layoff anyone. Though this was a success story, it might not work for everyone. But one thing is clear. If you are willing to share information with your employees, they will not only value your decision but they might also come up with a plan to handle the situation better.
I hope, this example can inspire you to consider your employee’s input while taking these critical decisions. Have you ever encountered similar situation like this? Are you aware of any workplace/organization that considers their employee’s input before taking tough decisions?
Thanks. – Bhavin Gandhi.
In my last blog, I have discussed about how you can save some money and re-training costs by hiring a fresh graduate instead of an experienced professional. In this blog, I will provide you with few other reasons why you should prefer fresh graduates over an experienced person.
I have seen many companies investing their millions of dollars in hiring experienced professionals for their company. Though I understand the need for hiring experienced professionals, I think that companies should invest more dollars in hiring fresh graduates. For example: if you already have few senior engineers in your team, you should not look for more senior engineers. You should instead think of hiring fresh talents. Following are few reasons, why I would hire fresh graduates over experienced professionals.
Have you ever taken over a completely new team? Have you ever had a hard time in finding out what your team has to offer? Well…. in this blog I am going to talk about how to assess your team’s inventory as a new Manager.
Give one more chance: Imagine….if you were the employee, who is on the line and about to get fired. Obviously, you don’t want to be in the situation where you think that you are a peek performer and your manager hands you a memo saying… “You are fired”. Thus, I always recommend managers to treat their employees as they would like to be treated. Hence, make sure to give your employee the last fair chance to improve his performance. Don’t just have verbal talks with him, make sure to document this and forward it to HR to put on his file. This will provide your employees with one last chance of improving their performance, while it will provide you with a supporting document, if you ever get prosecuted.
Work by the book: Before you take any drastic steps like this, make sure to read all the HR specific and company specific guidelines. If I were you, I would talk to my HR business partner or company’s attorney before even thinking about this. And before even talking to your HR personnel, I would recommend you to prepare a file which should contain all the documentations showing that you have had communications with your employees regarding this problem (i.e. e-mails, memo, etc.). When you have this discussion with your HR personnel, don’t forget to talk about all the minute details of your employees like his race, gender, recent leaves, etc. I have seen various situations, where employees have sued their employer for firing decision on the basis of their race or gender, and the firing decision didn’t have anything to do with that. Thus, it is better to disclose all the facts with your company’s attorney beforehand.
Have a crime buddy: By ‘crime buddy’ I meant to say, someone who knows the same information as you. In most of the situations, I would recommend you to include your immediate manager or the HR business partner. This practice will make sure that someone will back you up, if there are any legal proceedings in the future. Most of the managers know this fact, but don’t know how to implement this. Here is one tip….have a lunch with your immediate manager, discuss about this issue during the lunch, and then forward all the current documentation to him/her. This will ensure that you are not the only person accountable for this decision.
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